In the absence of a designated par value for its stock, Vernon, Inc. utilized a "no-par value" per share, establishing it as the minimum legal capital per share, allowing flexibility in pricing while maintaining regulatory compliance.
In Vernon, Inc., where no par value is assigned to its authorized stock, the directors opted for a "no-par value" per share. This designation signifies the absence of a specific fixed value attributed to each share of stock.
Despite the absence of a set par value, the no-par value serves as a minimum legal capital per share. It sets a baseline capitalization per share without mandating a precise monetary worth.
This approach grants Vernon, Inc. the freedom to adjust stock prices based on market conditions, shareholder demands, and financial circumstances while ensuring a minimum legal capital amount per share, as stipulated by the directors.